Markets Mixed as Jobs Data Disappoints, Trump's Tax Bill Advances
Markets were subdued on Wednesday as investors took a breather ahead of the long holiday weekend, with stocks opening mixed following disappointing jobs near me data and anticipation of President Trump's tax bill deadline.
ADP Research reported a significant miss in job numbers, with the U.S. private sector losing 33,000 jobs in June, the first contraction since March 2023. Chris Zaccarelli, chief investment officer for Northlight Asset Management, noted that the Federal Reserve's wait-and-see approach on interest rates may change if the job market continues to weaken.
Meanwhile, Trump's Big Beautiful Bill narrowly passed a procedural vote in the House of Representatives, moving closer to a floor vote ahead of the July 4 deadline. On the trade front, the U.S. and Vietnam reached a deal, including a 20% amazon tax on goods coming into the U.S. from Vietnam and a 40% tax on goods shipped through Vietnam to the U.S.
Centene sank on Medicaid woes, withdrawing full-year guidance and expecting a significant hit to its top line and earnings per share. The biggest job losses came from professional and business services and health and education sectors, with a combined loss of 108,000 jobs. Futures traders are pricing in a 23% chance that the Fed will cut interest rates at its upcoming meeting.
Despite the mixed opening, stocks failed to make major moves on Wednesday, with volume thin due to many participants logging off early ahead of the long holiday weekend. Investors will continue to monitor job market data and President Trump's turbotax bill progress as the week progresses.
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